Hungary Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027
Summary
The construction industry in Hungary is expected to shrink by 7.6% in real terms in 2023 and 0.6% in 2024, owing to headwinds caused by rising inflation, interest rates, and construction material prices. According to the Hungarian Central Statistical Office (KSH), the overall construction producer price index rose by 24.5% in 2022 - up from an annual growth of 11.4% in 2021. By segments, it rose by 26.7% for the construction of buildings, 26.3% for specialized construction activities, and 19.5% for civil engineering works. Moreover, the delay in accessing the European Union (EU) Recovery and Resiliency Facility (RRF) funds will also weigh on the industry’s growth in 2023. In 2022, the EU froze funds worth HUF11.3 trillion ($29.3 billion) for Hungary, amid concerns over the ‘Rule of Law’ and fundamental rights. Hungary had missed a target to overhaul its judiciary, as required by the EU, by the end of March 2023. This is likely to further delay the flow of EU funds to Hungary and delay the progress of projects that are planned to be implemented with funding from the EU.
The industry is however expected to rebound at an average annual growth rate of 5.7% from 2025 to 2027, supported by investments in transport, electricity, housing, manufacturing, and gas projects. To reduce greenhouse gases, the government plans to shift its focus to renewable energy as the primary source of electricity production and set a target of achieving a 20% share of renewables in the total electricity generation mix by 2030, and 30% by 2040. In 2022, the European Investment Bank (EIB) and the European Investment Fund (EIF) signed HUF317 billion ($821 million) in new financing for priority investments across Hungary. This includes funding to support energy-efficient refurbishment of residential buildings and installation of domestic renewable energy systems across the country. To curb inflation and avoid a recession, the government announced, in November 2022, that it will offer large and medium-sized companies HUF200 billion ($517.9 million) in loan guarantees and reduced rate loans. Previously in October 2022, the government announced a scheme in which it will provide subsidies worth HUF150 billion ($388.5 million) to large companies that invest in improving energy efficiency.
The report provides detailed market analysis, information, and insights into the Hungarian construction industry, including -
- The Hungarian construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Hungarian construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
This report provides a comprehensive analysis of the construction industry in Hungary. It provides -
- Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Hungary, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
- Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using GlobalData's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Context
- 3.1 Economic Performance
- 3.2 Political Environment and Policy
- 3.3 Demographics
- 3.4 Risk Profile
- 4 Construction Outlook
- 4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
- 4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
- 5 Key Industry Participants
- 5.1 Contractors
- 5.2 Consultants
- 6 Construction Market Data
- 7 Appendix
- 7.1 What is this Report About?
- 7.2 Definitions
- 7.3 CRI Methodology
- 7.4 GlobalData Construction
- Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: Hungary, Key Economic Indicators
- Table 3: Hungary, Commercial Construction Output by Project Type (Real % Change), 2018-27
- Table 4: Hungary, Top Commercial Construction Projects by Value
- Table 5: Hungary, Industrial Construction Output by Project Type (Real % Change), 2018-27
- Table 6: Hungary, Top Industrial Construction Projects by Value
- Table 7: Hungary, Infrastructure Construction Output by Project Type (Real % Change), 2018-27
- Table 8: Hungary, Top Infrastructure Construction Projects by Value
- Table 9: Hungary, Energy and Utilities Construction Output by Project Type (Real % Change), 2018-27
- Table 10: Hungary, Top Energy and Utilities Construction Projects by Value
- Table 11: Hungary, Institutional Construction Output by Project Type (Real % Change), 2018-27
- Table 12: Hungary, Top Institutional Construction Projects by Value
- Table 13: Hungary, Residential Construction Output by Project Type (Real % Change), 2018-27
- Table 14: Hungary, Top Residential Construction Projects by Value
- Table 15: Hungary, Key Contractors
- Table 16: Hungary, Key Consultants
- Table 17: Hungary, Construction Output Value (Real, $ Million)
- Table 18: Hungary, Construction Output Value (Nominal, HUF Billion)
- Table 19: GlobalData Construction Market Definitions
- Table 20: Risk Dimensions
- Table 21: Ratings, Scores and Definitions
- List of Figures
- Figure 1: Eastern Europe, Construction Output (Real % Change), 2021-27
- Figure 2: Hungary, Construction Output by Sector (Real % Change), 2021-23 and 2024-27
- Figure 3: Hungary, Risk Summary
- Figure 4: Hungary, Risk Regional Comparison
- Figure 5: Hungary, Construction Output Value (Real, $ Billion, 2017 Prices and Exchange Rate), 2018-27
- Figure 6: Hungary, Construction Output Value, by Sector (Real, $ Million), 2018-27
- Figure 7: Hungary, Construction Value Add (HUF Million, Average Prices of 2015)
- Figure 8: Hungary, Gross Fixed Capital Formation in Construction, Chain Linked Volumes 2015, % Change YoY
- Figure 9: Hungary, Volume Indices of the National Economy's Investments for Construction (Corresponding Period of the Previous Year=100)
- Figure 10: Hungary, Employment in Construction (In Thousand)
- Figure 11: Hungary, Construction Permits Issued (In Number)
- Figure 12: Hungary, Construction Projects Momentum Index
- Figure 13: Region, Construction Projects Momentum Index
- Figure 14: Hungary, Commercial Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 15: Hungary, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 16: Hungary, Wholesale and Retail Trade Value Add (HUF Billion, Average Prices of 2015)
- Figure 17: Hungary, Accommodation and Food Service Value Add (HUF Million, Average Prices of 2015)
- Figure 18: Hungary, Total number of inbound trips to Hungary (in thousands) and total expenditure of inbound visitors to Hungary (In HUF Million), % Change YoY
- Figure 19: Hungary, Construction Permits Issued for Commercial Buildings (In Number)
- Figure 20: Hungary, Construction Permits Issued for Agricultural Buildings (In Number)
- Figure 21: Hungary, Industrial Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 22: Hungary, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 23: Hungary, Volume Indices of the National Economy's Investments in Manufacturing (Corresponding Period of the Previous Year=100)
- Figure 24: Hungary, Manufacturing Value Add (HUF Billion, Average Prices of 2015)
- Figure 25: Hungary, New Manufacturing Order Index (at Constant Prices, Corresponding Period of Previous Year = 100)
- Figure 26: Hungary, Construction Permits Issued for industrial Buildings (In Number)
- Figure 27: Hungary, Total Exports in Goods (HUF Billion, Nominal Prices)
- Figure 28: Hungary, Infrastructure Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 29: Hungary, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 30: Hungary, Volume Indices of the National Economy's Investments in Transportation and Storage (Corresponding Period of the Previous Year=100)
- Figure 31: Hungary, Transportation and Storage Activities Value Add (HUF Million, Average Prices of 2015)
- Figure 32: Hungary, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 33: Hungary, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 34: Hungary, Volume Indices of the National Economy's Investments in Electricity, Gas, Steam and Air Conditioning Supply (Corresponding Period of the Previous Year=100)
- Figure 35: Hungary, Volume Indices of the National Economy's Investments in Water Supply, Waste Management and Remediation (Corresponding Period of the Previous Year=100)
- Figure 36: Hungary, Information and Communication Value Add (HUF Billion, Average Prices of 2015)
- Figure 37: Hungary, Institutional Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 38: Hungary, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 39: Hungary, Volume Indices of the National Economy's Investments in Education (Corresponding Period of the Previous Year=100)
- Figure 40: Hungary, Volume Indices of the National Economy's Investments in Human Health and Social Work (Corresponding Period of the Previous Year=100)
- Figure 41: Hungary, Human health and Social Work Activities Value Add (HUF Million, Average Prices of 2015)
- Figure 42: Hungary, Education Value Add (HUF Million, Average Prices of 2015)
- Figure 43: Hungary, Residential Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 44: Hungary, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 45: Hungary, Real Estate Value Add (HUF Million, Average Prices of 2015)
- Figure 46: Hungary, Volume Indices of the National Economy's Investments in Real Estate (Corresponding Period of the Previous Year=100)
- Figure 47: Hungary, Construction Permits Issued for Residential Buildings (In Number)
- Figure 48: Hungary, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 49: Hungary, Headquarters of Key Consultants (% of Total Project Pipeline)
Research Assistance
Download our eBook: How to Succeed Using Market Research
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook